Spain published the regulatory revision for wind energy assets
Madrid, February 28th 2020: The Spanish Government published today, in Boletín Oficial Del Estado, the Order TED/171/2020 which includes the revision of the parameters to remunerate the renewable energy assets, under the remuneration framework that was approved by the Royal Decree 413/2014 of June 2014.
In accordance with Royal Decree 17/2019, pre-tax return is unchanged at 7.398% until 2031.
The 3 year revision period (2020-2022) of the parameters includes:
- Wind profile coefficient: from previous 14.79% to 6.14% (reflecting the average of 2017 and 2018)
- Generation toll: no longer in place vs €0.5/MWh previously
- System Operator compensation cost: introduced at €0.137/MWh
- Market price (€/MWh): forecasted pool prices with defined caps and floors for the standard production, such that:
Standard production (MWh):
- is exposed to prices fluctuations when the wholesale price is between the “High Floor” and the “Low Cap”
- benefits 50% when the wholesale price is between the “High Cap” and “Low Cap” and are 50% protected of the price between “High Floor” and “Low Floor”
- isn’t exposed to prices fluctuations when the wholesale price is higher than the “High Cap” or below the “Low Floor”
As a consequence of the above, EDP Renováveis (“EDPR”) remuneration to investment (see Annex I) is €116 million per year, from 2020 to 2022.
Annex I – Remuneration to Investment
The remuneration to investment depends on the entry into service of the asset and is defined based on a standard asset for each year, such that:
|Date||Remuneration to Investment|
EDP Renováveis, S.A.